Hostmore PLC AGM Trading Update (8724B)
07 Juin 2023 - 8:00AM
UK Regulatory
TIDMMORE
RNS Number : 8724B
Hostmore PLC
07 June 2023
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Hostmore plc
AGM Trading Update
7 June 2023
In conjunction with today's Annual General Meeting of
shareholders, Hostmore plc, together with its subsidiaries, being
the "Group", announces an update on trading for the 22 weeks ended
4 June 2023.
Like-for-like ("LFL") revenue and total revenue for the first 22
weeks of the year, adjusted for the variance in the VAT rate on
food sales between FY22 and FY23, remain broadly consistent with
the revenue performance for the first 16 weeks of the year
announced on 28 April 2023:
First 16 weeks First 22 weeks
LFL Revenue (1%) (3%)
--------------- ---------------
Total Revenue +2% (1%)
--------------- ---------------
The cost reduction initiatives announced on 28 April and 2 May
2023 are benefitting EBITDA in line with the quantums and timings
as previously communicated. Further opportunities for savings are
being evaluated and the details thereof will be announced following
their implementation.
The previously announced utilities hedging programme commenced
near the end of May 2023. Commodity spot prices have continued to
decline and our decision to delay entering the hedging market has
benefited the business with the locked-in rates being about 9%, or
GBP1m, lower for the full year FY23 than expected on 28 April 2023.
We have not hedged any of our remaining FY23 gas usage yet and 46%
of our remaining electricity usage remains unhedged. We intend to
begin hedging FY24 usage in due course.
Pleasingly, the Team's focus on quality, relevance and
simplicity continues to deliver a significant improvement in the
Guest Opinion Score for TGI Fridays. This has increased from 68 at
December 2021, to 74 at December 2022, 80 at March 2023 and 83 at 4
June 2023.
In line with the revised capital allocation policy announced on
28 April 2023, the Board's focus remains on cash flow generation to
repay Group borrowings, following which there will be an evaluation
of shareholder distributions.
Gavin Manson, Hostmore plc's Chairman, commented:
"The ongoing loyalty of our guests is welcome. I am extremely
grateful to all our colleagues for their continued hard work and
commitment, which has resulted in a further improvement in the
Guest Opinion Scores for TGI Fridays. This is a great cornerstone
to build upon. Our focus continues to be on implementing high ROI
organic growth initiatives and extending the lifetime value of our
guests by adding further to the guest experience through our three
pillars of quality, relevance and simplicity. This is expected to
increase the number of annual repeat visits by our customers.
With the revision to our capital allocation policy, to
prioritise debt repayment and shareholder distributions, I am
confident that this will ensure a reduction in net debt and an
ongoing improvement in profitability.
As previously announced, I step down from the Board today to
focus on my executive commitment elsewhere. I am delighted that, as
previously announced, Stephen Welker will step up to become the
Chairman and Julie McEwan and Helena Feltham will join the Board at
the conclusion of the Annual General Meeting later today. I am
confident that the leadership of the Group is in secure hands. I
wish everyone at Hostmore every success for the future."
ENDS
ENQUIRIES
Hostmore plc
Alan Clark, Chief Financial Officer
Email: enquiries@hostmoregroup.com
+44 330 460 5588
Dentons Global Advisors
Jonathon Brill / James Styles
Email: Hostmore@dentonsglobaladvisors.com
+44 (0)20 7664 5095
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END
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